Micron: The Only Chip Stock I'm Buying

Gary Alexander33.53K FollowersFollow5ShareSavePlay(8min)CommentsSummaryMicron stands out as an undervalued opportunity among overbought semiconductor stocks, despite a recent 20% pullback post-Q2 results.The company's revenue is tripling on a y/y basis, buoyed by sold-out memory supply.Prices for DRAM have increased by ~60% sequentially and NAND by ~70% sequentially, leading Micron to record-level gross margins and underlying EPS.The company recently introduced 5-year commitments for its customers that ensure it has visibility to longer-term demand, reducing the risk of a supply glut in the future. JHVEPhoto/iStock Editorial via Getty Images Amid this year's flight to safety in the stock markets, the safest bet in the tech sector has emerged as chip stocks. After all, most chip manufacturers (especially memory companies) are sold out, thanks to the data center boom. ThatThis article was written byGary Alexander33.53K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.